Market updates — Discussion with Ben Bernanke

The biggest news of 2016 was definitely the US election. Along with the Brexit decision, populist voting took the pollsters and establishment by surprise. The markets continued their upward swing and even a US interest rate increase didn't significantly dampen the growth in equity markets. Our analysts have short and longer term updates at the links below. We will continue to recommend balance in client portfolios and look forward to reviewing your portfolio with you in 2017 to prepare for the future.

As part of our due diligence beyond Scotia's research, Andrew and I had the opportunity to sit in on a discussion PIMCO hosted with Ben Bernanke. The conversation was actually on the date of the recent 0.25% increase in the Federal Reserve rate, which slowed the recent momentum in the equity markets and caused some volatility in the bond markets. We view both of these reactions as healthy and normal.

Year-end tax planning and dates

If you are planning on topping up an RESP account, we would be pleased to help. Most transactions should be underway by December 23 however, as our offices will be closed on the December 26th and 27th and also January 2nd.

Tax Loss Selling Deadlines

The last day for tax-loss selling is December 23, 2016 in Canada and December 27, 2016 in the US. Please contact us if you would like to review any tax strategies for your non-registered investment accounts.

For a complete review of tax planning considerations into 2017, including marginal tax rates on various sources of income, please see this article:

New CRM2 reports coming in 2017

We are pleased that you will be receiving new reports in the new year with greater rate of return and fee disclosure clarity. These are somewhat cryptically called Client Relationship Model 2 (CRM2) reports after the new industry reporting standard. Our team has generated similar reports for clients, as requested, in the past, but having them automated will be a great time saver for our team and provide more information for our clients. See this brochure that outlines more about the fee descriptions included in the upcoming reports and the wide variety of services those fees cover.

Dollar vs. Time Weighted Returns

One interesting item to note is that the new reports will use a dollar-weighted return as mandated by our regulators. Dollar and time-weighted returns each have their benefits. A dollar-weighted return allows for comparisons of how your timing in the market affected your returns (i.e. how did the timing of my having extra money to invest or needing to withdraw impact my overall returns over time?). Whereas, a time-weighted return allows for comparison with other investments or indices (i.e. is my advisor getting me the same, better or worse rates than the market?). Please ask us if you would like to have a time-weighted return calculation prepared to compare against a benchmark, as the new reports will only provide dollar-weighted returns. This report from Fidelity has a good comparison of the two return methodologies:

Team News — New title & toy drive

Andrew McGoey's title has been changed to Senior Wealth Advisor, recognizing his long-standing service to clients of the Spiess McGlade Team. Congratulations Andrew and thank you for all you contributions to our clients' investment success.

We are also pleased to note that our team members Brenda Cordeiro and Debbie Ann Espiritu were leaders in our branch's teddy bear campaign. Here are two very cuddly photos how their efforts will help less fortunate kids this winter.

Scotiabank — A great place to work

For the 3rd year in a row, Scotiabank has been named one of the World's Best Multinational Workplaces by the Great Place to Work® Institute. Scotia has been recognized as a great place to work in Canada, Chile, Costa Rica, Dominican Republic, El Salvador, Mexico, Panama and Peru. Our team here is very pleased to be part of such a successful global company.

The Financial Planning Standards Council (http://www.fpsc.ca/) issues the CFP credential and ensures that advisors like me, Allan, Andrew and David adhere to rigorous standards and have a written obligation to put clients' interests ahead of our own. Ensuring adherence to these standards protects both the Canadian public and the reputation of the financial planning profession.

In addition to their main website, they also have a great site for the public at:

® Registered trademark of The Bank of Nova Scotia, used under licence. ™ Trademark of The Bank of Nova Scotia, used under licence. Scotia Wealth Management™ consists of a range of financial services provided by The Bank of Nova Scotia (Scotiabank®); The Bank of Nova Scotia Trust Company (Scotiatrust®); Private Investment Counsel, a service of 1832 Asset Management L.P.; 1832 Asset Management U.S. Inc.; Scotia Wealth Insurance Services Inc.; and ScotiaMcLeod®, a division of Scotia Capital Inc. ("SCI"). Wealth advisory and brokerage services are provided by ScotiaMcLeod, a division of SCI. Insurance services are provided by Scotia Wealth Insurance Services Inc., the insurance subsidiary of SCI. When discussing life insurance products, ScotiaMcLeod advisors are acting as Life Underwriters (Financial Security Advisors in Québec) representing Scotia Wealth Insurance Services Inc. SCI is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

The Spiess McGlade Team is a personal trade name of Carl Spiess and Allan McGlade.